Graham Corporation Awarded More Than $3.5 Million in Orders for Refining, Petrochemical and Nuclear Energy Industries

• Providing a steam surface condenser for capacity expansion of a U.S. ethylene plant and a vacuum system for the upgrade of a refinery in China
• Supplying replacement equipment for nuclear energy facilities in the U.S. and South Korea

BATAVIA, N.Y.--(BUSINESS WIRE)-- Graham Corporation (NYSE Amex: GHM), a global designer and manufacturer of critical equipment for the oil refining, petrochemical and power industries, including the supply of components and raw materials to nuclear energy facilities, today announced that it has been awarded more than $3.5 million in orders that are expected to be delivered in the third quarter of Graham’s fiscal year 2013, which begins April 1, 2012.

The orders for the equipment to be designed and manufactured span three key markets within the energy industry that Graham serves: petrochemical, refining and nuclear energy. A steam surface condenser will be engineered to provide for capacity expansion and improved operating reliability of a U.S. ethylene plant and a vacuum system will be developed for the upgrade of an oil refinery in China. The steam surface condenser will be built in the company’s Batavia facility and the vacuum system will be partially built both in China and Batavia.

James R. Lines, Graham’s President and Chief Executive Officer, commented, “We believe that it’s our strong brand, built as a result of our reputation for consistently delivering high quality products and reliable responsive service, which continues to enable us to win orders and maintain our leading market share. We have supplied equipment to this ethylene facility over several decades and have been called back again to address its expansion and operational enhancements. Likewise, in China, we believe that we are winning opportunities in the refining industry due to the respect we have garnered from our previous work. Our success rate for large vacuum systems for refineries remains in the 40% to 50% range for additional refining capacity added during the past 5 years.

The remaining orders address the needs of the nuclear energy market. Graham will supply through its Lapeer facility the replacement of a heat exchanger originally supplied by Graham in 1970 for a U.S. installation, as well as various worn pump parts at a South Korean facility.

Mr. Lines went on to comment about the order environment, “We are encouraged by the bidding activity we are experiencing across all our markets. The competitive advantages created by the low cost of natural gas in the U.S. has spurred domestic interest in the petrochemical industry and, as is the case with this ethylene production facility, we are also seeing some early stage investments to return idle plants to operation. Likewise, Asia continues to generate projects to expand our pipeline of opportunities. The oil refining markets continue to offer substantial bidding activity and we have seen a few convert into orders over the past several months. While recent order levels have been below where we wish they were, the improving quality and expanding number of bids in the pipeline drives our optimism for the future.”

ABOUT GRAHAM CORPORATION

With world-renowned engineering expertise in vacuum and heat transfer technology, Graham Corporation is a global designer, manufacturer and supplier of custom-engineered ejectors, pumps, condensers, vacuum systems and heat exchangers. For 75 years, Graham has built a reputation for top quality, reliable products and high-standards of customer service. Sold either as components or complete system solutions, the principal markets for Graham’s equipment are energy, including oil and gas refining and nuclear and other power generation, chemical/petrochemical and other process industries. In addition, Graham's equipment can be found in diverse applications, such as metal refining, pulp and paper processing, shipbuilding, water heating, refrigeration, desalination, food processing, pharmaceutical, heating, ventilating and air conditioning, and in nuclear power installations, both inside the reactor vessel and outside the containment vessel.

Graham Corporation’s subsidiary Energy Steel & Supply Co. is a leading code fabrication and specialty machining company dedicated exclusively to the nuclear power industry.

Graham Corporation’s reach spans the globe. Its equipment is installed in facilities from North and South America to Europe, Asia, Africa and the Middle East. Graham routinely posts news and other important information on its website, www.graham-mfg.com, where additional comprehensive information on Graham Corporation and its subsidiaries can be found.

Safe Harbor Regarding Forward Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “believes,” “optimism,” “could,” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, statements relating to Graham’s acquisition of Energy Steel & Supply Co. (including but not limited to, the integration of the acquisition of Energy Steel, revenue, backlog and expected performance of Energy Steel, and expected expansion and growth opportunities within the domestic and international nuclear power generation market), anticipated revenue, the timing of conversion of backlog to sales, market presence, profit margins, foreign sales operations, its ability to improve cost competitiveness, customer preferences, changes in market conditions in the industries in which it operates, changes in general economic conditions and customer behavior, forecasts regarding the timing and scope of the economic recovery in its markets, and its acquisition strategy are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation's most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.”

Should one or more of these risks or uncertainties materialize, or should any of Graham Corporation's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation's forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.

Graham Corporation
Jeffrey Glajch, 585-343-2216
Vice President Finance and CFO
jglajch@graham-mfg.com
or
Kei Advisors LLC
Deborah K. Pawlowski, 716-843-3908
dpawlowski@keiadvisors.com

Source: Graham Corporation

Released February 8, 2012